Orphan Well Association spending tops $2 million on care of Lexin assets
CALGARY — The cost of looking after hundreds of wells, pipelines and other oilfield gear left behind by bankrupt Lexin Resources Ltd. has exceeded $2 million and the bills continue to roll in, says Alberta’s Orphan Well Association.
The association was handed responsibility for nearly 1,100 wells plus associated equipment after the Alberta Energy Regulator took the unusual step last February of shutting down all Lexin operations.
The AER accused the Calgary-based oil and gas producer of ignoring orders and regulations and forced it into receivership, claiming it owed more than $1 million in levies to the OWA and another $70 million in security for its reclamation obligations.
At the time, OWA chairman Brad Herald estimated it would cost about $1 million to administer the assets for six months until the ones with value are sold to new owners — but he said the actual costs have more than doubled as the process enters its ninth month.